Forex Market: News, Analysis, And Ideas

April 27, 2018: It's been an incredibly active week thus far in traditional financial markets, with active trading, particularly in foreign currencies. Key GDP (Gross domestic product) figures were unveiled in the United Kingdom and America, even though the earnings season is furthermore still in full-blown pace, so there wasn't any lack of catalysts.

The US Dollar’ robustness continued to be the dominant trend, even while the Dollar was somewhat off its highs around the Wall Street open, in spite of the lot better than anticipated American GDP increase in the 1st quarter.

Pretty much all eyes continue to be on the Euro Dollar, which broken its trading range which was unchanged for several months, slipping beneath the 1.21 handle, leading to agony for Dollar sorts, in which has been an incredibly jam-packed trade in the right at the end of 2017.

The British Pound got walloped following the release, and the fiat currency dropped to a 6-week low versus the lately rallying US Dollar, trading under 1.3750, just a couple weeks after reaching a two-year high in the vicinity of 1.44.

The US Dollar sturdiness continued in spite of the continuing pullback in United States Treasury yields. However while physical commodities had been under pressure on Friday, both crude oil and Gold showed steadiness thus far on Friday session, with the yellow metal moving higher and the WTI crude oil trading a little bit in the red zone.

The Japanese Yen was initially lagging and weaker, close to middle 109 handle as the Korea news reports were released (that removed the drive for a safe and secure flight has been the talk), however, has crept back again into the high 108 handle as Wall Street waned into the closing day.

The Canadian Dollar was trading at approximately 1.28 handle lower by 0.30 percent on Friday as the currency continues to be mostly fluctuating in the 1.28 to 1.29 range through the entire week.

The Australian Dollar continues to be heading down from the moment it reaches this year’s highs, way back in January of this year. Its slide sped up last week as United States 10-year Treasury yields went up to four-year high levels, so much that the Aussie Dollar climb up from the low levels of December last year to those of January 2018 highs has been all-but entirely retraced.

April 23, 2018: USD/CAD pair appears to have found short-term support around 1.24500, at levels just below our entry price 1.26340. Daily momentum is bullish, and the pair is heading towards Key resistance 1.29390. We look to exit this trade possibly at this price. However, T/P 1.30970 is very much in play.

The predicted weakness didn't exceed our expectancy by any means as a break down of the robust entry of 0.77790 sent AUD/USD pair falling to a low of 0.76160. From this point, the currency is likely ‘attracted’ by month’s low of 0.76430 and even though a break of this price level is not surprising, a move below Mean support 0.76250 is expected to pull in some buying. On the whole, a strong close below Mean support would suggest that an original T/P will be fulfilled very rapidly.

Carney’s cool overall tone and his acknowledgment of the latest “mixed” economic numbers, placed a seed of uncertainty within investors and traders that the BoE is going to take action in May. With inflation cooling down, disappointing retail sales data and coupling with a dovish Carney coming into the picture, the British currency bulls might be in trouble

The odds of an interest rate hike next month dived to below 50% (before Carney remarks the adds stood at 70%) and this put some heavy pressure on the pair. Level of sensitivity to monetary policy is likely to remain a crucial fundamental topic affecting the GBP. If currency market outlook continues to degrade over higher United Kingdom interest levels, the Sterling might be subjected to furthermore downside risk.

Checking out the technical landscape, this has been a bearish week for the GBP/USD pair, with prices deterioration filling our entry price of 1.40030. The Mean support level at 1.40030 could transform into a dynamic bounce that will give us a Destination price of 1.41730 in the short time. If bulls can push prices back above this price, the next Key resistance level of interest will be 1.43390.

The EUR Dollar that had taken the strain of the European stock market ultimately broke down the 1.23 handle and closed minus 0.5% on Friday. The Japanese Yen was also a currency much discussed as it moved toward the 108 handle.

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